Unpaid service tax liablity dissallow u/s.43b

This query is : Resolved

Vikas Purohit (Querist)
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28 September 2012 1. I wanna ask about U/s.43B. if Unpaid Service tax liablity not paid till 30th september 2012 then it is dissallowable U/s.43B ?
2. What if i put cheque in dropbox of the bank on 28th September 2012 and it realise in bank on 3rd october due to govt holiday etc... then in that case it is allowable u/s.43B or Not ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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29 September 2012 1) If the Service tax is routed through Profit & Loss account then disallowed under section 43B.

2) If the check would be honured on 3rd October then it would be treated as paid on 28th September i.e before due date.So allowable as expenditure but there is no evidence to the cheque putted in drop box on 28th September so in this view department mas disallow the payment. However auditor also no evidence to the cheque putted in drop box on 28th September so he has to report in his report about this and has to consider as allowable expenditure.

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